Executive Summary
Lennar reported Q1 2025 revenue of $7.63 billion, down 30.4% year over year and 23.3% quarter over quarter, with net income of $519.5 million and diluted earnings per share of $1.98. Despite a meaningful top‑line decline, operating margin stood at 9.35% and net margin at 6.81%, signaling a degree of margin discipline amid softer volumes. The quarter reflected substantial working capital dynamics, as operating cash flow was negative at $289 million and free cash flow was negative by $345 million, primarily driven by a large outright reduction in working capital (notably a $980.8 million adverse swing) and elevated inventory levels.
Key Performance Indicators
QoQ: -23.28% | YoY:-30.42%
QoQ: -44.67% | YoY:-57.93%
QoQ: -48.51% | YoY:-62.65%
QoQ: -52.61% | YoY:-61.84%
QoQ: -51.23% | YoY:-58.92%
Key Insights
Revenue: $7.631B (YoY -30.42%, QoQ -23.28%). Gross profit: $861.1M; gross margin ~11.3% (grossProfitRatio = 0.1128). Operating income: $713.7M; operating margin ~9.35% (operatingIncomeRatio = 0.0935). Net income: $519.5M; net margin ~6.81% (netIncomeRatio = 0.0681). EPS: $1.98; diluted EPS $1.98 (YoY EPS change ~-58.92%, QoQ ~-51.23%). Cash flow: Net cash provided by operating activities -$289.0M; change in working capital -$980.8M; capex $56.0M; free cash flow -$345.1M. Balance sheet highlights...
Financial Highlights
Revenue: $7.631B (YoY -30.42%, QoQ -23.28%). Gross profit: $861.1M; gross margin ~11.3% (grossProfitRatio = 0.1128). Operating income: $713.7M; operating margin ~9.35% (operatingIncomeRatio = 0.0935). Net income: $519.5M; net margin ~6.81% (netIncomeRatio = 0.0681). EPS: $1.98; diluted EPS $1.98 (YoY EPS change ~-58.92%, QoQ ~-51.23%). Cash flow: Net cash provided by operating activities -$289.0M; change in working capital -$980.8M; capex $56.0M; free cash flow -$345.1M. Balance sheet highlights: total assets $34.99B; total liabilities $12.12B; total stockholders’ equity $22.73B. Cash and equivalents $2.52B; long-term debt $3.61B; net debt $1.09B. Liquidity ratios: current ratio 3.32; quick ratio 0.74; cash ratio 0.46. Efficiency: inventory turnover ~0.43; days inventory outstanding ~208 days; DSO ~18 days; asset turnover 0.218. Valuation snapshots (approximate): P/E ~15.3x; P/B ~1.39x; P/S ~4.14x; dividend yield ~0.42%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.63B |
-30.42% |
-23.28% |
| Gross Profit |
861.05M |
-57.93% |
-44.67% |
| Operating Income |
713.67M |
-62.65% |
-48.51% |
| Net Income |
519.53M |
-61.84% |
-52.61% |
| EPS |
1.98 |
-58.92% |
-51.23% |
Key Financial Ratios
operatingProfitMargin
8.96%
operatingCashFlowPerShare
$-0.97
freeCashFlowPerShare
$-1.18
dividendPayoutRatio
25.6%
Management Commentary
Note: The earnings transcript data were not provided in the supplied dataset. As a result, the synthesis below for management commentary and thematic quotes relies on the disclosed quarterly results and any publicly known guidance; direct quotes from Lennar management could not be extracted from the provided material.
Transcript not provided in the data.
— N/A
Transcript not provided in the data.
— N/A
Forward Guidance
The data set does not include formal forward guidance from Lennar for QQ2 2025 or beyond. Given the cyclicality of the residential construction market and macro headwinds (mortgage-rate sensitivity, housing starts, and consumer demand), investors should monitor: (i) backlog development and conversion rates, (ii) net new orders, cancellations, and price trends in Lennar’s key geographies, (iii) housing-financing costs and Lennar’s financing/risk management activities, and (iv) working capital management and land/land development cadence. Any improvement in mortgage rates or housing demand could help stabilize revenue and cash flow, but execution will depend on the pace of orders and cancellations, land development cycles, and supply chain normalization.